After being seized by South Korean authorities during an arrest, the coins remained in cold storage for four years before being sold.
Prosecutors in South Korea have sold a Bitcoin cache they seized from a suspect in 2017. The stash is now worth $10.5 million more than it was before the suspect was apprehended. The money is said to have been deposited in the country’s national treasury. This is the first time South Korean authorities have sold seized Bitcoin, and it’s also the first time the coins have traveled since they were put in cold storage in 2017. BTC is currently selling for just under $60,000 at the time of publishing.
The South Korean government sold $10.8 million worth of seized bitcoins.
The coins, which were worth $238,000 when they were seized, were recently sold for $10.8 million, a 4,400 percent rise in value in just four years. Based on that percentage rise, we can estimate that Bitcoin was around $1,300 at the time of the arrest, which was around April 2017. Authorities kept the coins in cold storage for four years because there were no clear cryptocurrency laws or legislation in effect at the time.
South Korea is concentrating on cryptocurrency legislation.
For the first time, the South Korean government passed broad cryptocurrency-related regulations earlier this month, raising pressure on exchanges and crypto asset service providers to use real-name trading accounts and disclose their activities to Korea’s Financial Intelligence Unit. Prosecutors are said to have sold the coins as soon as the new laws took effect on March 25. The resolve of South Korea to control the cryptocurrency industry stems from revelations about cryptocurrency’s usage by tax evaders and the perennial concerns about money laundering. The government has also declared that new laws imposing a 20% capital gains tax on benefit would go into effect next year. New laws imposing a 20% capital gains tax on income earned from cryptocurrency trading will take effect next year, according to the government.